What did the Tribunal hold?

The Tribunal held that the tax effect on the disputed amount was below the revised monetary limit set by the CBDT circular. Therefore, the appeal was not maintainable and liable to be dismissed.

The Revenue filed an appeal before the ITAT. The assessee argued that the appeal was not maintainable due to a revised CBDT circular increasing the monetary limit for appeals. The tax effect of the disputed amount was below this revised limit.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the revised monetary limits for appeals stipulated by CBDT circulars.

DCIT vs Varsity Education Management… | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI N.K. PRADHAN

For Appellant: Shri K. Gopal a/w, Ms. Neha Paranjape

For Respondent: Shri D.G. Pansari, Shri K. Gopal a/w, Ms. Neha Paranjape

Date of Hearing – 14.08.2019 Date of Order – 23.08.2019

O R D E R PER SAKTIJIT DEY. J.M.

Captioned appeal by the Revenue arises out of order dated 30th March 2017, passed by the learned Commissioner of Income Tax (Appeals)–3, Mumbai, for the assessment year 2013–14.

At the time of hearing of the appeal, Shri K. Gopal, learned Counsel for the assessee submitted that the appeal is not maintainable in view of CBDT Circular no.17/2019, dated 8th August 2019, revising

2 Varsity Education Management P. Ltd. the monetary limit as per Para–3 of the above CBDT Circular from ` 20 lakh to ` 50 lakh. He submitted, the tax effect on the amount disputed by the Revenue works out to ` 46,99,637. In this regard, he furnished a statement of computation of tax on the amount disputed by the Revenue.

Shri D.G. Pansari, the learned Departmental Representative after perusing the tax computation and the amount disputed by the Revenue in the present appeal agreed that the tax effect on the disputed amount is below the revised monetary limit of ` 50 lakh as per the recent CBDT Circular referred to above. Hence, the appeal needs to be withdrawn. However, he submitted, liberty may be given to the Revenue to seek recall of the order if subsequently it is found that the case falls under any of the exceptions provided in the aforesaid CBDT Circular and the amendment made to the said Circular subsequently.

Having considered rival submissions and perused material on record, we are of the view that the tax effect on the amount disputed by the Revenue is below the revised monetary limit of ` 50 lakh as per the CBDT Circular no.17/2019, dated 8th August 2019, r/w CBDT Circular no.3/2018, 11th July 2018. It also stands clarified that the revised monetary limit of ` 50 lakh as per the aforesaid CBDT Circular

3 Varsity Education Management P. Ltd. would also apply to all pending appeals. In view of the aforesaid, since the tax effect on the amount disputed by the Revenue in the present appeal is below ` 50 lakh, the appeal is not maintainable, hence, liable to be dismissed. However, the Revenue is at liberty to seek recall of the order if it is found that the case falls under any of the exceptions provided in CBDT Circulars referred to above, hence, will not come within the purview of low tax effect.

In the result, appeal is dismissed. Order pronounced in the open Court on 23.08.2019

DEPUTY COMMISSIONER OF INCOME TAX-1(3)(2), MUMBAI vs. VARSITY EDUCATION MANAGEMENT PRIVATE LIMITED, MUMBAI

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